The Federal Reserve recently cut short-term interest rates amid declining inflation and optimistic market conditions. Silver demand is projected to rise due to industrial use, while oil faces pressure from oversupply signals. The labor market remains strong despite recent job growth slowdown, influencing potential future rate adjustments.
A lot of readers liked our article on how much cash could flood the gold market once institutional investors start buying. Now it’s time to look at silver.
As we outlined in our silver supply/demand crunch article, the silver market has entered a structural imbalance. It is not temporary. Global supply is locked into a decline, leaving the industry ill-equipped to respond meaningfully to any spike in demand of physical metal for the foreseeable future.
The data is in: based on a review of reports from multiple consultancies, the silver market has officially entered a supply/demand imbalance. The structure now in place sets up a scenario where a genuine crunch could occur.
Copyright © 2002- | Precious Metals International, Ltd. All Rights Reserved.